Full Form of GRN

Full Form of GRN – Goods Received Note

The full form of GRN is Goods Received Note. The GRN refers to the business document which is filled by the customer at the time of receipt of the goods from the seller to confirm the receipt of all the goods as agreed between the parties involved, and it is often compared with the purchase order (PO) before issuing the payment to the seller of the goods.

Features of GRN

In manufacturing and other kinds of organizations, where the organizational process includes transporting the goods from one place to another or transporting from outside market to the warehouse, goods receipt note plays a very important role. Sometimes, the processing time may be slow from the usual, which can be traced from the goods receipt note.

One of the important features of goods receipt note is that, where the goods are transported to the store, the store manager takes this document as proof as to whether the goods are as per the required quantity, whether the required quantity as written in the note is actually received or not. Hence the goods receipt note also becomes proof and becomes the audit trailAudit TrailThe audit trail is the chronological record bearing the documentary evidence to certify the source of financial data of the company. It even traces the series of activities undertaken by the business in a certain period to ensure data accuracy.read more.

Full Form of GRN

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What is to be Included in Goods Received Note?

Usually, in the organization, the pre-print of the goods receipt note is of the store’s department. Hence the management should properly train them in terms of what is required to be included in the goods receipt note. The following list is prepared on the important things to be included in GRN:

Whats in GRN

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  • The top of the GRN shows the name of the supplier of the goods.
  • It is followed by the date and time of the issue and date and time of receipt of the store’s department’s goods.
  • The proper address of the place where the goods are supposed to be transported and where the goods are supposed to be delivered along with the proper PIN code.
  • The description of the goods getting transported and the quantity of each kind of product, the rate, and the price of the goods.
  • The end of the GRN is done by the signature and name of the authorized personnel of both the supplier and the store manager and the clerk who is supposed to receive the goods.

Process of GRN

The following is the process of GRN:

  • The receipt of the invoice and challan and unloading of the goods to the stores.
  • The physical verification of the number of goods received along with the description of the goods.
  • If the goods are disputed or are of a short quantity, the supplier is contacted asking for the shortfall.
  • After the quantity is checked, the quality test is made.
  • An acknowledgment shall be made by challan and sent it to the supplier.
  • After the above step, the receiving department will prepare the GRN in 5 copies. Original for them, and the remaining to the purchasing dept., accounts dept., one to the store manager, and one to the person making the purchase requisition.
  • Based on it, entries are made to stores ledgers.


  • For any accounts department, the goods receipt note is a vital document since it serves the purpose of the objectivity principleObjectivity PrincipleThe objectivity principle in accounting states that financial statements should be objective i.e. the accounting information should be unbiased and free from any external or internal influence. read more of accounting. Any entry in the books of accounts is compulsorily required to be supported by the proof in documentary form.
  • Further, before making any payment of products to the seller, the goods are verified with the GRN. Also, in an organization, to reduce the probability of errors and fraud, another must check one person’s work, and one person is not involved in more than 1 continuous process. Hence due to GRN, the organizational work is inspected by different people.
  • Since the actual physical quantity of goods is checked with the goods receipt note, payment is only made for those actually received. Hence wrongful payment is avoided.
  • This document also places an important role in the supplier. The supplier can prove with the help of the GRN that the goods have been dispatched from their end as the GRN is an official legal document and can be accepted as proof in the court of law.

Goods Received Note vs Goods Dispatch Note

The following are the differences between Goods Received Note and Goods Dispatch Note:

  • The supplier’s dispatch department raises the Goods dispatch (GDN) while the purchaser’s receiver department prepares the Goods Received Note.
  • Without a GDN raised, the supplier’s accounts department cannot raise the invoice while, without GRN, the purchaser’s department cannot make payment or entries in the books.


The following are the benefits of the goods received a note:


GRN is the abbreviation used for goods received the note. As the name implies, the goods received a note the confirmation of the receipt of the goods by the customer or the buyer from the seller, which is filled by the buyer when the goods are actually received. It is an official legal document and can be accepted as proof in a court of law.

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This has been a guide to the Full Form of GRN and its definition. Here we discuss the process of Goods Received Note along with its features, importance, and differences. You may refer to the following articles to learn more about finance –

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